Legislature(2005 - 2006)BUTROVICH 205

03/15/2006 08:30 AM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSSB 206(JUD) Out of Committee
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSSB 222(JUD) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         March 15, 2006                                                                                         
                           8:33 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Ralph Seekins, Chair                                                                                                    
Senator Charlie Huggins, Vice Chair                                                                                             
Senator Gene Therriault                                                                                                         
Senator Hollis French                                                                                                           
Senator Gretchen Guess                                                                                                          
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
SENATE BILL NO. 222                                                                                                             
"An  Act  relating to  breaches  of  security involving  personal                                                               
information,  consumer report  security freezes,  consumer credit                                                               
monitoring,  credit  accuracy,   protection  of  social  security                                                               
numbers, disposal  of records, factual declarations  of innocence                                                               
after identity  theft, filing  police reports  regarding identity                                                               
theft,  and furnishing  consumer credit  header information;  and                                                               
amending Rule 60, Alaska Rules of Civil Procedure."                                                                             
     MOVED CSSB 222(JUD) OUT OF COMMITTEE                                                                                       
SENATE BILL NO. 206                                                                                                             
"An Act relating  to material witnesses; and  amending Rule 58.1,                                                               
Alaska Rules  of Civil Procedure,  and Rule 204, Alaska  Rules of                                                               
Appellate Procedure."                                                                                                           
     MOVED CSSB 206(JUD) OUT OF COMMITTEE                                                                                       
SENATE BILL NO. 306                                                                                                             
"An Act requiring  an employing unit with a  change in ownership,                                                               
management,  or   control  or   similar  change  to   notify  the                                                               
Department  of Labor  and Workforce  Development  of the  change;                                                               
relating to  the unemployment contribution  rate of  an employing                                                               
unit;  defining  'business'  for  purposes  of  statutes  setting                                                               
unemployment  contribution  rates;   establishing  the  crime  of                                                               
obtaining an  unemployment rate by  deception; and  providing for                                                               
an effective date."                                                                                                             
     HEARD AND HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB 222                                                                                                                  
SHORT TITLE: PROTECTION OF PERSONAL INFORMATION                                                                                 
SPONSOR(s): SENATOR(s) THERRIAULT, GUESS                                                                                        
01/09/06       (S)       PREFILE RELEASED 12/30/05                                                                              
01/09/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (S)       L&C, JUD                                                                                               
01/24/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
01/24/06       (S)       Heard & Held                                                                                           
01/24/06       (S)       MINUTE(L&C)                                                                                            
02/14/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
02/14/06       (S)       Moved CSSB 222(L&C) Out of Committee                                                                   
02/14/06       (S)       MINUTE(L&C)                                                                                            
02/16/06       (S)       L&C RPT CS 4DP 1AM NEW TITLE                                                                           
02/16/06       (S)       DP: BUNDE, DAVIS, ELLIS, SEEKINS                                                                       
02/16/06       (S)       AM: STEVENS B                                                                                          
02/22/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
02/22/06       (S)       Heard & Held                                                                                           
02/22/06       (S)       MINUTE(JUD)                                                                                            
02/27/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
02/27/06       (S)       Heard & Held                                                                                           
02/27/06       (S)       MINUTE(JUD)                                                                                            
02/28/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
02/28/06       (S)       Heard & Held                                                                                           
02/28/06       (S)       MINUTE(JUD)                                                                                            
03/01/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
03/01/06       (S)       Heard & Held                                                                                           
03/01/06       (S)       MINUTE(JUD)                                                                                            
03/08/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
03/08/06       (S)       <Bill Hearing Canceled>                                                                                
03/14/06       (H)       JUD AT 8:30 AM BUTROVICH 205                                                                           
03/14/06       (S)       Scheduled But Not Heard                                                                                
BILL: SB 206                                                                                                                  
SHORT TITLE: DETENTION OF MATERIAL WITNESSES                                                                                    
SPONSOR(s): SENATOR(s) BUNDE                                                                                                    
01/09/06       (S)       PREFILE RELEASED 12/30/05                                                                              
01/09/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (S)       JUD, FIN                                                                                               
02/16/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
02/16/06       (S)       Heard & Held                                                                                           
02/16/06       (S)       MINUTE(JUD)                                                                                            
02/27/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
02/27/06       (S)       Scheduled But Not Heard                                                                                
03/08/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
03/08/06       (S)       Heard & Held                                                                                           
03/08/06       (S)       MINUTE(JUD)                                                                                            
03/15/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
BILL: SB 306                                                                                                                  
SHORT TITLE: UNEMPLOYMENT INSURANCE FUND & TAXES                                                                                
SPONSOR(s): LABOR & COMMERCE                                                                                                    
02/23/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/06       (S)       L&C JUD                                                                                                
03/02/06       (S)       L&C AT 2:00 PM BELTZ 211                                                                               
03/02/06       (S)       -- Meeting Canceled --                                                                                 
03/07/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
03/07/06       (S)       Moved SB 306 Out of Committee                                                                          
03/07/06       (S)       MINUTE(L&C)                                                                                            
03/09/06       (S)       L&C RPT 3DP                                                                                            
03/09/06       (S)       DP: BUNDE, DAVIS, STEVENS B                                                                            
03/15/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
WITNESS REGISTER                                                                                                              
Senator Gene Therriault                                                                                                         
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Sponsor of SB 222                                                                                         
Senator Gretchen Guess                                                                                                          
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Sponsor of SB 222                                                                                         
Steve Cleary, Director                                                                                                          
Alaska Public Interest Research Group                                                                                           
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Testified in support of SB 222                                                                           
Ed Sniffen, Assistant Attorney General                                                                                          
Department of Law                                                                                                               
PO Box 110300                                                                                                                   
Juneau, AK  99811-0300                                                                                                          
POSITION STATEMENT:  Commented on SB 222                                                                                      
Senator Con Bunde                                                                                                               
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Sponsor of SB 206 and SB 306                                                                              
Dean Guaneli, Chief Assistant Attorney General                                                                                  
Department of Law                                                                                                               
PO Box 110300                                                                                                                   
Juneau, AK  99811-0300                                                                                                          
POSITION STATEMENT:  Testified in support of SB 206                                                                           
Walt Monegan, Chief of Police                                                                                                   
Anchorage Police Department                                                                                                     
632 W. 6 Ave                                                                                                                    
Anchorage, AK  99501                                                                                                            
POSITION STATEMENT:  Testified in support of SB 206                                                                           
Jane Alberts, Legislative Aide                                                                                                  
Staff to Senator Con Bunde                                                                                                      
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Answered questions regarding SB 306                                                                      
Paula Scavera, Special Assistant                                                                                                
Department of Labor & Workforce Development                                                                                     
PO Box 21149                                                                                                                    
Juneau, AK 99802-1149                                                                                                           
POSITION STATEMENT:  Testified in support of SB 306                                                                           
Pat Shier, Acting Deputy Director                                                                                               
Department of Labor & Workforce Development                                                                                     
PO Box 21149                                                                                                                    
Juneau, AK 99802-1149                                                                                                           
POSITION STATEMENT:  Answered questions regarding SB 306                                                                      
ACTION NARRATIVE                                                                                                              
CHAIR  RALPH   SEEKINS  called  the  Senate   Judiciary  Standing                                                             
Committee meeting to  order at 8:33:44 AM.  Present were Senators                                                             
Hollis French, Gretchen Guess,  Gene Therriault, Charlie Huggins,                                                               
and Chair Ralph Seekins.                                                                                                        
           SB 222-PROTECTION OF PERSONAL INFORMATION                                                                        
8:34:13 AM                                                                                                                    
CHAIR RALPH SEEKINS announced SB 222 to be up for consideration.                                                                
SENATOR GENE THERRIAULT moved version S as the working document                                                                 
before the committee.                                                                                                           
CHAIR SEEKINS objected for the purpose of explanation.                                                                          
SENATOR GRETCHEN GUESS explained the changes to the bill that                                                                   
were contained in version S:                                                                                                    
                 Changes in CSSB 222, Version S                                                                             
   1. Page  2, line  2: Notification of  breach only  to impacted                                                               
      persons not entire databases                                                                                              
   2. Page 2,  lines 12-13: Requires written  notification by law                                                               
      enforcement when they lift a delay on notification                                                                        
   3. Page  2,  line 24:  Deletes  section  45.48.070 on  Minimum                                                               
   4. Page  3, line 27:  Breach of security  includes acquisition                                                               
      or reasonable belief of acquisition                                                                                       
   5. Page  4, lines 7-21: Ensures  clarity in the  definition of                                                               
      "personal information" and include encrypted data when the                                                                
      encryption key has been accessed or acquired                                                                              
   6. Page  6,  lines  10  and 13-23:  Clarifies  that  insurance                                                               
      companies can hold an application as incomplete (or other                                                                 
      listed actions) when a security freeze is in place                                                                        
   7. Page  8,  line  19  and  page  9, line  23:  Clarifies  the                                                               
      language in the "Notice of Rights" outlined in section                                                                    
      45.48.170 to ensure consistency with the bill's effect                                                                    
   8. Page 10,  line 19: Deletes the  section previously numbered                                                               
      45.48.200 on Minimum Contacts                                                                                             
   9. Page  12, line  8: Clarifies  freeze exemptions  to include                                                               
      credit score if to a consumer at their request                                                                            
   10. Page 12, lines  14-18:  Improves clarity  and conforms  to                                                               
      California law in the "re-seller" exemption                                                                               
   11. Page 16, line 28-page 17, line 3: Clarifies that local law                                                               
      may authorize collection of Social Security numbers                                                                       
   12. Page 17,  lines 1-3:  Clarifies  that  state agencies  may                                                               
      adopt regulations to authorize collections of Social                                                                      
      Security numbers                                                                                                          
   13. Page 17, lines  4-8: Ensures state  of local  agencies can                                                               
      disclose SSN to another state, local, or federal                                                                          
      governmental agency when required to carry out the                                                                        
      agency's duties                                                                                                           
   14. Article 5, pages  17-20: Adds  government agencies  to the                                                               
      disposal of records section                                                                                               
8:43:22 AM                                                                                                                    
CHAIR SEEKINS removed his objection. Hearing no further                                                                         
objections, the committee adopted version S.                                                                                    
SENATOR  THERRIAULT explained  that the  issue of  state agencies                                                               
being liable remained  up for discussion and that  there would be                                                               
a fiscal  impact. However, he  stated, the sponsors  would rather                                                               
the fiscal discussion happen in the Senate Finance Committee.                                                                   
STEVE CLEARY,  Director of Alaska Public  Interest Research Group                                                               
(AkPIRG),  testified in  support of  SB 222.  He stated  that the                                                               
bill was  a great example  of bipartisan work in  the Legislature                                                               
and that it would benefit consumers in Alaska.                                                                                  
8:48:24 AM                                                                                                                    
ED SNIFFEN, Assistant Attorney General,  Department of Law (DOL),                                                               
testified that version S resolves  most of the concerns that have                                                               
been heard by  the different entities and  the public. Concerning                                                               
interagency  disclosure,  some   agencies  also  disclose  social                                                               
security  information   to  non-governmental  third   parties  in                                                               
certain  circumstances, such  as  the Alaska  Commission on  Post                                                               
Secondary  Education.  That  agency  is required  to  report  any                                                               
defaulted loans to credit agencies.                                                                                             
8:51:25 AM                                                                                                                    
SENATOR  GUESS   informed  Mr.  Sniffen  that   she  and  Senator                                                               
Therriault were working on fixing that concern.                                                                                 
8:54:24 AM                                                                                                                    
SENATOR HOLLIS FRENCH  moved CSSB 222(JUD) out  of committee with                                                               
individual recommendations and attached  fiscal notes. Hearing no                                                               
objections, the motion carried.                                                                                                 
             SB 206-DETENTION OF MATERIAL WITNESSES                                                                         
8:57:24 AM                                                                                                                    
CHAIR RALPH SEEKINS announced SB 206 to be up for consideration.                                                                
SENATOR GENE THERRIAULT  moved version I as  the working document                                                               
before the committee.                                                                                                           
CHAIR SEEKINS objected for explanation.                                                                                         
SENATOR CON BUNDE, Bill Sponsor,  informed the committee that the                                                               
chief of  police in his district  is frustrated by the  fact that                                                               
officers  are   not  able  to  temporarily   detain  crime  scene                                                               
witnesses, particularly  in "gang violence" situations.  He noted                                                               
the importance of  upholding the rights of  ordinary citizens and                                                               
so the bill is crafted with that in mind.                                                                                       
SENATOR THERRIAULT  referred to  page 2,  lines 26-30,  and asked                                                               
Senator  Bunde   the  reason  for  obtaining   fingerprints  from                                                               
SENATOR BUNDE  replied that would  only occur  in the event  of a                                                               
murder  or attempted  murder.  It  would be  for  the purpose  of                                                               
diffusing future combat in the situation of gang retaliation.                                                                   
DEAN  GUANELI, Chief  Assistant Attorney  General, Department  of                                                               
Law (DOL),  added that false  identification cards  are prevalent                                                               
among  gang  members  and  so  fingerprinting  proves  useful  in                                                               
serious cases.                                                                                                                  
9:03:48 AM                                                                                                                    
SENATOR THERRIAULT countered many other  people could be swept up                                                               
in  a police  detainment scenario  and innocent  people could  be                                                               
subject  to  having  their fingerprints  entered  into  a  police                                                               
database by force.                                                                                                              
MR. GUANELI responded  the police would have the  right to obtain                                                               
the fingerprints  but it would  not be  mandatory and would  be a                                                               
judgment call.                                                                                                                  
9:06:06 AM                                                                                                                    
SENATOR  BUNDE noted  police make  judgment calls  every day.  He                                                               
spoke in  support of the  provision and  said it was  not special                                                               
interest  legislation  for Anchorage  only.  Gang  violence is  a                                                               
growing trend, he said.                                                                                                         
MR. GUANELI  noted the statute  cited on  Page 2, line  28 should                                                               
have referenced AS 11.61.190 instead of AS 11.61.195.                                                                           
SENATOR THERRIAULT  referred to  Page 2, line  26 "the  person is                                                               
detained  in connection  with the  investigation"  and asked  Mr.                                                               
Guaneli to explain what that means.                                                                                             
MR.  GUANELI explained  that  the same  section  (Article 3  Sec.                                                               
12.50.201) draws  out the  standards that  a police  officer must                                                               
meet  in order  to detain  a person.  The detainee  might not  be                                                               
involved in the  crime or even be a suspect  but the police might                                                               
believe that person  has information about the crime  and so they                                                               
would be  able to lawfully  detain a person that  they reasonably                                                               
believe to have information.                                                                                                    
SENATOR HOLLIS  FRENCH asked Mr.  Guaneli to read for  the record                                                               
the  definition of  misconduct involving  a weapon  in the  first                                                               
9:11:20 AM                                                                                                                    
MR. GUANELI did so.                                                                                                             
Sec.  11.61.190.    Misconduct  involving weapons  in  the  first                                                               
     (a) A person commits the crime of misconduct involving                                                                     
weapons in the first degree if the person                                                                                       
     (1) uses or attempts to use a firearm during the commission                                                                
of an offense under AS 11.71.010 - 11.71.040; or                                                                                
     (2) discharges a firearm from a propelled vehicle while the                                                                
vehicle  is being  operated and  under circumstances  manifesting                                                               
substantial  and  unjustifiable  risk  of physical  injury  to  a                                                               
person or damage to property.                                                                                                   
     (b) Misconduct involving weapons in the first degree is a                                                                  
class A felony.                                                                                                                 
SENATOR FRENCH referred to Page 2,  line 9, and asked whether the                                                               
police would  be allowed to  detain people who  may be in  a mall                                                               
parking  lot  and  not  have  witnessed  anything.  He  expressed                                                               
concern with the broad language of "in the vicinity."                                                                           
MR. GUANELI explained subsection  (a)(1)(B) would allow police to                                                               
talk  to  people  who  they   reasonably  believe  have  material                                                               
information. The critical  part of the bill  is subsection (a)(2)                                                               
where it  would require that  the police must believe  the person                                                               
would have information on the crime.                                                                                            
9:16:23 AM                                                                                                                    
SENATOR FRENCH asked Mr. Guaneli  the level of force police would                                                               
be authorized to employ in  order to gain cooperation of citizens                                                               
who may not want to be photographed or fingerprinted.                                                                           
MR.  GUANELI  said  police  currently have  the  ability  to  use                                                               
reasonable force  to enable  the effect  of whatever  action they                                                               
seek.  It would  depend on  the  circumstances and  in this  case                                                               
police would be  dealing with a citizen who  may have information                                                               
and so  that level  would involve  the "laying  on of  hands" and                                                               
"restricting movements."                                                                                                        
9:18:24 AM                                                                                                                    
CHAIR SEEKINS  said he also had  concern over the words,  "in the                                                               
vicinity,"  but  noted  that  the   committee  has  discussed  it                                                               
extensively.  He said  the intent  is there  must be  a level  of                                                               
reasonable immediacy.                                                                                                           
MR. GUANELI agreed. In response  to Senator French's concern over                                                               
force, the  provision on line 16  comes directly from a  Court of                                                               
Appeals case  in Alaska where  police pulled over a  vehicle they                                                               
believe  contained   a  crime  victim.   The  Court   of  Appeals                                                               
authorized police to detain even a crime victim, he said.                                                                       
9:21:22 AM                                                                                                                    
CHAIR  SEEKINS posed  a hypothetical  scenario  where the  police                                                               
believed an eyewitness  to a crime posed a threat  to the officer                                                               
and asked  whether they  would be allowed  to detain  the witness                                                               
more securely.                                                                                                                  
MR. GUANELI  reported there  was a  large body  of case  law that                                                               
allows police to take reasonable actions to protect themselves.                                                                 
CHAIR SEEKINS asked whether police  would have legal authority to                                                               
detain suspected gang  members with more force than  SB 206 would                                                               
MR. GUANELI  replied SB  206 does not  directly address  level of                                                               
force. The intent  is that reasonable force  be applied dependent                                                               
on circumstances on a case-by-case basis.                                                                                       
CHAIR  SEEKINS   asked  Mr.  Guaneli  to   describe  an  "exigent                                                               
MR. GUANELI  explained an  exigent circumstance  is a  level that                                                               
may not rise to an emergency  but there is some reason to believe                                                               
action must  be taken  immediately. One example  might be  in the                                                               
collection  of evidence.  A witness  may have  evidence on  their                                                               
person  and not  even know  it and  police recognize  that action                                                               
must be taken in order to secure that evidence.                                                                                 
9:25:53 AM                                                                                                                    
CHAIR  SEEKINS   removed  his   objection.  Hearing   no  further                                                               
objections, Version I was adopted.                                                                                              
SENATOR  CHARLIE HUGGINS  moved  Amendment 1.  Page  2, line  28;                                                               
delete  AS   11.61.195  and  insert  AS   11.61.190.  Hearing  no                                                               
objections, Amendment 1 was adopted.                                                                                            
MR.  WALT  MONEGAN,  Anchorage  Chief  of  Police,  testified  in                                                               
support  of SB  206. He  spoke of  a homicide  case in  Anchorage                                                               
outside a VFW  hall four years ago. Police later  found out there                                                               
were  potentially  50  witnesses  to the  shooting  and  yet  the                                                               
homicide remains  unsolved. He expressed frustration  that police                                                               
often are not privy to what the community knows about a crime.                                                                  
9:31:38 AM                                                                                                                    
SENATOR FRENCH  asked Chief  Monegan the level  of force  that he                                                               
would authorize for his officers to detain witnesses.                                                                           
CHIEF   MONEGAN  explained   that  the   beginning  of   a  crime                                                               
investigation is  often chaotic  and officers do  not necessarily                                                               
know the bad  guys from the good. They  separate individuals into                                                               
individual cars,  sometimes handcuffed,  until things  get sorted                                                               
out. Officers  are good  at explaining  to the  public afterwards                                                               
the reason for  using force to gain control of  a crowd. Normally                                                               
everything happens fairly  quietly but sometimes there  are a few                                                               
people who try to resist being  detained and when that happens it                                                               
activates the  "prey drive," he  stated. Police generally  try to                                                               
find out  why someone is  resisting and that would  include using                                                               
reasonable force.                                                                                                               
9:35:53 AM                                                                                                                    
SENATOR  HUGGINS   stated  concern  for  consistency   of  policy                                                               
throughout the Alaska Chiefs of Police.                                                                                         
CHIEF  MONEGAN responded  matters  are generally  handled in  the                                                               
same manner.  Officers must be respectful  and professional while                                                               
trying to revoke rapport in  the community. Officers who take the                                                               
bullying tact generally fail at the investigation scene.                                                                        
CHAIR SEEKINS  closed public testimony  and asked  for discussion                                                               
among  committee  members.  He  said   SB  206  appears  to  give                                                               
additional  powers of  detainment  in  serious circumstances.  He                                                               
said he is  satisfied that the bill  was ready to move  on to the                                                               
next committee of referral.                                                                                                     
SENATOR HUGGINS said  he would be more supportive of  the bill if                                                               
he lived in Anchorage. He suggested  putting a sunset on the bill                                                               
for future review.                                                                                                              
9:39:53 AM                                                                                                                    
SENATOR BUNDE noted that legislation  could be changed during any                                                               
legislative session and so he did not see a need for a sunset.                                                                  
SENATOR FRENCH  expressed concern that  the bill would make  it a                                                               
crime  for  a  person,  who  may be  unaware  that  a  crime  has                                                               
occurred, to hurry  away from the scene without  consenting to be                                                               
photographed. He  expressed support  for the  fingerprint portion                                                               
of the bill.                                                                                                                    
SENATOR BUNDE  opined people are  photographed a great  deal more                                                               
than they realize.                                                                                                              
CHAIR SEEKINS expressed support for the bill.                                                                                   
9:44:56 AM                                                                                                                    
SENATOR FRENCH countered his constituents  support the part about                                                               
taking fingerprints  of people  connected with  the investigation                                                               
of  a murder  or attempted  murder and  they support  the officer                                                               
using a  certain amount of force  to do so. People  would support                                                               
making  it a  crime for  a person  who does  not comply  with the                                                               
officer in this type of situation  but to slow down a law-abiding                                                               
citizen  and force  them to  have their  photograph taken  seemed                                                               
overly done.                                                                                                                    
SENATOR  FRENCH moved  Amendment 2.  Page 3,  line 8,  delete the                                                               
words "photographs or".                                                                                                         
9:47:42 AM                                                                                                                    
CHAIR SEEKINS said there would  have to be a reasonable necessity                                                               
for the police  officer to detain a person  before the photograph                                                               
would be taken.                                                                                                                 
MR. GUANELI agreed.  The reason the criminal provision  is in the                                                               
bill  is because  of reasonable  force.  The intent  is that  the                                                               
officer  would  facilitate  cooperation   of  the  individual  by                                                               
explaining  that it  would be  a quick  and easy  process and  by                                                               
advising them of the consequences if they resist.                                                                               
CHAIR  SEEKINS  asked  Mr.  Guaneli to  explain  the  reason  the                                                               
officer would be taking the photograph.                                                                                         
MR.  GUANELI said  the most  common  scenario would  be that  the                                                               
person was not able to show proper identification.                                                                              
CHAIR SEEKINS noted that person  would already be under temporary                                                               
MR. GUANELI said correct.                                                                                                       
9:52:59 AM                                                                                                                    
SENATOR GUESS recognized that the  bill does not specify that the                                                               
photograph would be  taken in the event that a  person was unable                                                               
to show identification. She expressed  support for the amendment.                                                               
Law-abiding citizens  could be charged with  a misdemeanor simply                                                               
for rushing off to get their kids from daycare, she stated.                                                                     
CHAIR  SEEKINS said  he  had a  harder time  with  the words  "or                                                               
resists" on line 8 than with the photograph taking.                                                                             
SENATOR BUNDE  referred to  line 5  and said  the officer  has to                                                               
have "reasonable suspicion" that a person has witnessed a crime.                                                                
MR. GUANELI said  the notion of reasonable suspicion  is found in                                                               
all the  case law. The  length of  detention would depend  on the                                                               
reason for detention.                                                                                                           
9:56:00 AM                                                                                                                    
SENATOR FRENCH  said there  are no  Miranda warnings  for someone                                                               
under  temporary detention  and  so that  person  would not  know                                                               
their rights in the situation.  He said if the committee believes                                                               
that  a person  should  be set  free once  they  show the  proper                                                               
identification that should  be written into the bill.  He said it                                                               
is sure as  daylight that a lawful person will  be charged with a                                                               
crime because of the way the bill is currently written.                                                                         
CHAIR SEEKINS referred to the proposed Amendment 2 and objected.                                                                
Roll  call proved  Amendment  2 failed  with  Senators Guess  and                                                               
French  voting yea  and Senators  Huggins, Therriault,  and Chair                                                               
Seekins voting nay.                                                                                                             
9:58:01 AM                                                                                                                    
SENATOR  HUGGINS   moved  CSSB   206(JUD)  from   committee  with                                                               
individual recommendations and attached  fiscal notes. Hearing no                                                               
objections, the motion carried.                                                                                                 
           SB 306-UNEMPLOYMENT INSURANCE FUND & TAXES                                                                       
10:07:14 AM                                                                                                                   
CHAIR RALPH SEEKINS announced SB 306 to be up for consideration.                                                                
SENATOR  CON  BUNDE  explained   SB  306  addresses  unemployment                                                               
insurance  avoidance schemes  by unscrupulous  employers. Failure                                                               
to  pass the  bill would  result in  the de-certification  of the                                                               
Alaska  UI program  and  employers  in this  state  would lose  a                                                               
federal offset credit  of 5.4 percent, resulting  in $103 million                                                               
dollars in additional  taxes to the employer and  the state would                                                               
lose $30.8  million in administrative  and operation  funding for                                                               
UI programs.                                                                                                                    
SENATOR  GRETCHEN  GUESS asked  what  would  happen when  someone                                                               
doesn't  comply   simply  because   they  don't   understand  the                                                               
JANE ALBERTS, Staff  to Senator Bunde, surmised  that there would                                                               
be notification sent  to businesses that, in the  event that they                                                               
purchase or  acquire another business  they would be  required by                                                               
law to notify the Department of Labor and Workforce Development.                                                                
CHAIR SEEKINS  said it appears  that a business owner  would have                                                               
to  knowingly intend  to  deceive the  Department  and that  they                                                               
would  have to  be  in violation  of AS  42  U.S.C. 503(k)  (SUTA                                                               
Dumping Prevention Act of 2004).                                                                                                
10:12:17 AM                                                                                                                   
PAULA  SCAVERA,  Special  Assistant,   Department  of  Labor  and                                                               
Workforce  Development (DOLWD),  introduced Pat  Shier to  answer                                                               
PAT  SHIER,  Acting  Deputy Director,  Department  of  Labor  and                                                               
Workforce  Development (DOLWD)  offered to  answer questions.  He                                                               
explained    the   bill    was   intended    to   stop    willful                                                               
misrepresentation for the purpose of  obtaining a lower rate. The                                                               
bill  complies  with  the  federal  intent  that  there  be  more                                                               
meaningful penalties  for the specific purpose  of misleading the                                                               
DOLWD  in  order  to  fraudulently  obtain  an  artificially  low                                                               
unemployment tax rate.                                                                                                          
SENATOR GUESS  referred to her  original question and  asked what                                                               
happens when  the employing unit  purchases another  business and                                                               
does not notify the DOLWD.                                                                                                      
CHAIR SEEKINS asked the definition of "employing unit."                                                                         
MR. SHIER explained  an employing unit is defined as  a person or                                                               
an  organization that  has people  working for  it for  a certain                                                               
number of days.                                                                                                                 
CHAIR  SEEKINS  asked  whether  a  self-employed  person  was  an                                                               
employing unit.                                                                                                                 
MR. SHIER said no.                                                                                                              
10:15:53 AM                                                                                                                   
MR. SHIER responded to Senator  Guess's earlier question and said                                                               
the section  of the  bill in  question has  been in  effect since                                                               
prior to Alaska  Statehood. When an employer fails  to notify the                                                               
DOLWD,  they  are  not  automatically   penalized.  The  bill  is                                                               
designed to  codify in law  that there is that  obligation. There                                                               
is  no  penalty associated  with  a  failure  to report.  As  the                                                               
Department  becomes  aware  of  the  failures,  they  assist  the                                                               
business owner to comply with state and federal law.                                                                            
10:18:36 AM                                                                                                                   
SENATOR GUESS  referred to  Section 23.20.297  (a) and  asked Mr.                                                               
Shier to explain paragraphs (1-2).                                                                                              
MR. SHIER  said it was  important to  note lines 16-17,  which is                                                               
the  purpose they  are  attempting to  describe.  If an  employer                                                               
transfers its trade or business  to a smaller business, they have                                                               
to  take  their  higher  rate  with  them.  The  rates  are  then                                                               
recalculated  based   on  existing  regulations.   Paragraph  (2)                                                               
describes the situation  if the person is not an  employer at the                                                               
time they  acquire another business  and it governs how  the rate                                                               
would be applied.                                                                                                               
SENATOR GUESS asked for clarification  whether the business owner                                                               
would have to  be in a merge  situation in order for  the bill to                                                               
MR. SHIER  responded the "common  ownership" portion of  the bill                                                               
is the language that the  federal government required in order to                                                               
allow states to identify the person  at the root of the transfer.                                                               
The intent of the bill is  to identify the business owner that is                                                               
attempting to purchase  another business with a  smaller tax rate                                                               
and then  to claim that  smaller tax  rate for the  merged larger                                                               
SENATOR  GUESS  referred  to paragraph  (2)  and  questioned  the                                                               
reason for involving the commissioner.                                                                                          
MR. SHIER responded paragraph (2) deals  with a person who is not                                                               
an employer and has no  rights or responsibilities under the Act.                                                               
It is for someone  who is trying to obtain a  lower rate, such as                                                               
a person  who closes  a business  for a period  of time  and then                                                               
purchases another business and then  re-opens the closed business                                                               
and  claims  the  lower  tax   rate.  Paragraph  (2)  allows  the                                                               
Department to examine the prior  business and investigate whether                                                               
or not  the person closed  the business  for the sole  purpose of                                                               
obtaining a lower tax rate.                                                                                                     
10:27:38 AM                                                                                                                   
MR.  SHIER  added he  could  not  answer  as  to the  reason  for                                                               
involving  the commissioner  in paragraph  (2), but  that it  was                                                               
based on federal guidelines.                                                                                                    
SENATOR GUESS noted the bill was very confusing to read.                                                                        
CHAIR  SEEKINS said  the  fraudulent acts  would  occur under  AS                                                               
23.20.295(d)(1) and (4).                                                                                                        
SENATOR  GUESS  said  regardless  of  what  the  purpose  is,  AS                                                               
23.20.297(1-2)  should  be  part  of  the  system  regardless  of                                                               
whether they are fraudulent or not.                                                                                             
CHAIR SEEKINS said  subsection (d)(2) and (3)  are not fraudulent                                                               
acts   whereas  23.20.295(d)(1)   and  (4)   would   be  if   the                                                               
commissioner found intent.                                                                                                      
10:30:41 AM                                                                                                                   
MR. SHIER  claimed "intent and  knowing" are very  high standards                                                               
and difficult to  prove. The reason for SB 306  is due to federal                                                               
government compliance and state  employers stand to lose millions                                                               
of dollars in tax credits.                                                                                                      
SENATOR GUESS  reiterated her opinion  that the bill  was written                                                               
in an extremely  unclear manner. She said a  business couldn't be                                                               
charged with  a crime  and asked  whom the  person would  be that                                                               
would be charged with the felony.                                                                                               
MR. SHIER responded  it would be the individual who  has the duty                                                               
to pay.                                                                                                                         
CHAIR SEEKINS held the bill in committee.                                                                                       
There being  no further  business to  come before  the committee,                                                               
Chair Seekins adjourned the meeting at 10:34:23 AM.                                                                           

Document Name Date/Time Subjects